(1) Risk transfer through risk pooling is called ________.
I. Savings
II. Investments
III. Insurance
IV. Risk mitigation
Answer : III. Insurance
(2)The measures to reduce chances of occurrence of risk are known as _____.
I. Risk retention
II. Loss prevention
III. Risk transfer
IV. Risk avoidance
Answer :II. Loss prevention
(3)By transferring risk to insurer, it becomes possible ___________.
I. To become careless about our assets
II. To make money from insurance in the event of a loss
III. To ignore the potential risks facing our assets
IV. To enjoy peace of mind and plan one’s business more effectively
Answer :IV. To enjoy peace of mind and plan one’s business more effectively
(4)Origins of modern insurance business can be traced to __________.
I. Bottomry
II. Lloyds
III. Rhodes
IV. Malhotra Committee
Answer :II. Lloyds
(6)In insurance context ‘risk retention’ indicates a situation where _____.
I. Possibility of loss or damage is not there
II. Loss producing event has no value
III. Property is covered by insurance
IV. One decides to bear the risk and its effects
Answer :IV. One decides to bear the risk and its effects
(7)Which of the following statement is true?
I. Insurance protects the asset
II. Insurance prevents its loss
III. Insurance reduces possibilities of loss
IV. Insurance pays when there is loss of asse
Answer :IV. Insurance pays when there is loss of asse
(8)Out of 400 houses, each valued at Rs. 20,000, on an average 4 houses get burnt
every year resulting in a combined loss of Rs. 80,000. What should be the annual
contribution of each house owner to make good this loss?
I. Rs.100/-
II. Rs.200/-
III. Rs.80/-
IV. Rs.400/-
Answer :II. Rs.200/-
(9)Which of the following statements is true?
I. Insurance is a method of sharing the losses of a ‘few’ by ‘many’
II. Insurance is a method of transferring the risk of an individual to another
individual
III. Insurance is a method of sharing the losses of a ‘many’ by a few
IV. Insurance is a method of transferring the gains of a few to the many
Answer :I. Insurance is a method of sharing the losses of a ‘few’ by ‘many’
(10)Why do insurers arrange for survey and inspection of the property before
acceptance of a risk?
I. To assess the risk for rating purposes
II. To find out how the insured purchased the property
III. To find out whether other insurers have also inspected the property
IV. To find out whether neighbouring property also can be insured
Answer :I. To assess the risk for rating purposes
(11)Which of the below option best describes the process of insurance?
I. Sharing the losses of many by a few
II. Sharing the losses of few by many
III. One sharing the losses of few
IV. Sharing of losses through subsidy
Answer :II. Sharing the losses of few by many
